By Terry Murray – The House of Representatives recently voted in favor 407-17 of legislation that would allow non-accredited investors to make equity investments in privately held, small startup companies.
Currently, in order for an investor (that isn’t a friend or family member) to participate in a private placement memorandum the SEC requires that the investor has a net worth (excluding their primary residence) in excess of $2 million and/or an income of at least $250,000 per year for the past three consecutive years.
The crowd funding crowd has come back with the argument that anyone can go down to the local casino, or the state lottery outlet, and squander their money there, so why should the government be trying to protect these potential investors from the democratization of investor-driven startups? more> http://tinyurl.com/7edqv72
